Council: Macau must modernize transport laws to embrace ride-hailing

The conflict between Hong Kong taxis and unlicensed ride-hailing services has intensified, while Macau has softened its stance on legalization, according to Chester Ku from the Transport Consultative Council.

He noted that legalizing ride-hailing doesn’t mean replacing taxis, urging the government to conduct local research rather than simply adopting the mainland model.

The Hong Kong taxi industry has been severely affected by the rise of unlicensed taxis, leading to reduced business and financial instability, forcing fare adjustments that create a vicious cycle.

In contrast, Macau has long cracked down on unlicensed taxis, yet the difficulty in hailing one persists. Recently, transportation issues in Macau have resurfaced on the government’s agenda, with Chief Executive Sam Hou Fai and Secretary for Transport and Public Works Raymond Tam announcing plans to explore the feasibility of introducing ride-hailing services.

Speaking to the Times, Ku pointed out that the development of ride-hailing services is an “inevitable” trend, referencing remarks by neighboring Chief Executive John Lee about its irreversibility.

He further noted that as cities like Macau and Hong Kong open up within the Guangdong-Hong Kong-Macau Greater Bay Area, they face similar challenges in market development.

Ku urged the government to revise laws to better integrate such emerging industries, stating: “As a microeconomy dependent on tourism and exhibitions, Macau faces challenges in developing the ride-hailing market under the free travel policy. With Greater Bay Area integration, the Macau government must adapt to this trend and cannot continue regulating emerging markets with outdated frameworks.”

When discussing the demand for ride-hailing services in Macau, Ku highlighted urgency from two perspectives: market demand and traffic conditions.

He noted that while the number of taxi licenses remains stable – with the government increasing police-designated taxis by about 500 to a total of 1,700 to 1,800 – actual operational capacity has not significantly improved.

“It’s important to note that licensed taxis are not always in operation; this figure mainly reflects the status of licenses. Although there has been a slight decline in recent years, the overall transport capacity has not notably increased,” he acknowledged, citing the imbalance between supply and demand in Macau’s taxi services.

Ku believes that legalizing ride-hailing services will provide more flexible options for cross-regional travel through mainland China’s platforms like Amap (Gaode) and Baidu, utilizing technology and data analysis.

“With various financial initiatives underway, along with the easing of the central government’s travel permit policies – especially during the May Day Golden Week and Lunar New Year Festival – the number of travelers has surged.

The ‘last-mile’ services offered by ride-hailing platforms can help travelers better meet their needs and engage in community tourism and cultural activities, rather than being confined to traditional sightseeing routes,” he stated.

However, while fostering new industries, ride-hailing services must coordinate their development with the existing taxi industry to avoid conflicts, Ku emphasized. He recalled the public’s strong response to the Uber app in Macau in 2016, stating: “The public generally hopes for the healthy development of ride-hailing services in Macau, but caution is needed during implementation. Although ride-hailing is a major trend, we shouldn’t rush for results.”

He warned that hastily introducing new services can lead to legal and regulatory issues, stressing the importance of the government clearly communicating its research progress to the public.

“Ensuring legality and compliance are crucial steps in introducing ride-hailing services,” he pointed out, adding that the trend toward transformation in Macau’s taxi industry is evident, and addressing the gradual reduction of permanent taxi licenses and the reasonable transfer of licenses will be significant challenges for the future.

Taxi services meet market needs

In response to the government’s softened stance on legalizing ride-hailing services, Tony Kuok, president of the Macau Taxi Drivers Mutual Association, expressed his opposition in an interview with the Times.

He argued that the government should focus on data to understand how many people actually use ride-hailing services, stating: “Macau residents have never been frequent taxi users; I’ve shared this with lawmakers. My family rarely takes a taxi in a month – typically, only tourists do, due to their strict time constraints. However, tourist numbers have decreased recently. While demand rises on weekends, usage drops from Monday to Thursday, so this data cannot simply be used to assess the market.”

Kuok emphasized that Macau’s current taxi services adequately meet market needs.

He also noted that the taxi industry in Macau is increasingly seeing young drivers.

“With the closure of the satellite casinos, I have some young drivers on my roster, many of whom previously worked in brand sales. These individuals face limited career options and generally earn lower wages. Over time, they began to confront reality and entered the taxi industry for its relative freedom – if there’s work, they can drive. To start, they only need a taxi driver’s license, and many navigation tools now assist them in finding their way.”

He further emphasized that the current number of taxi licenses and drivers is balanced.

“The number of drivers and vehicles is roughly the same. There are also part-time drivers who work during the day and then drive in the evenings or whenever they have free time, and we arrange work for them.”

As Ku said, the trend toward ride-hailing services for taxis has been gaining momentum.

Just two weeks ago, Kuok’s association partnered with the mainland platform Gaode and the Macau platform MPay to launch a ride-hailing service that includes so-called “black taxis,” providing passengers with an alternative option for hailing a ride.

During the interview, Kuok also shared with the Times the progress of the collaboration between Macau’s taxi industry and Gaode.

He highlighted that Gaode’s technology and data analysis capabilities can assist drivers in finding passengers and determining optimal routes.

Additionally, Gaode’s system prevents drivers from arbitrarily selecting passengers or routes, providing services tailored to passengers’ needs, which helps drivers save time and increase their income. He quoted Gaode as stating: “They have a mission: the Ministry of Transport has tasked them with integrating the Greater Bay Area, ensuring that payments are accepted in Hong Kong and Macau, and enabling users to hail rides seamlessly.”

He noted that the platform has been officially operational for about two weeks, and the response from passengers has been “quite enthusiastic,” especially from mainland tourists.

“They are unfamiliar with the routes, and once they enter the app, they can quickly find a car. Although it sometimes takes time to locate a vehicle, they will expand their search range. Communication between passengers and drivers is also smooth, and many independent travelers hope to use this service,” Kuok said.

He added that the industry welcomes cooperation with the platform, noting that one positive aspect is its potential to attract more foreign passengers.

He introduced Gaode’s app, which supports multiple languages, allowing drivers to communicate with passengers via voice translation, greatly facilitating their work.

Kuok demonstrated the app’s usage: “Once a passenger requests a ride, the taxi receives a signal and can choose to accept the order. However, the driver’s phone does not display the passenger’s destination – only the pickup location – to prevent drivers from selecting passengers.”

Through Macau Pass technology, users need only register with their real names to use Macau Pass for payment, eliminating the need for cash.

According to him, over 300 taxis have currently joined the platform, with plans to increase that number gradually. The first phase will focus on allowing the industry to adapt to these changes.

With the platform entering the Macau market, the government issued a statement reminding passengers that drivers of black taxis who charge for phone calls or fail to show up after accepting a booking may be violating laws regarding excessive fares or refusal to transport passengers.

Regarding the authorities’ actions, Kuok stated that the Macau government has been passive in developing ride-hailing services but emphasized that the platform ensures drivers’ compliance. Any violations will result in suspension, effectively managing driver behavior.

He believes that with the launch of the platform, the empty-taxi rate will be significantly reduced while making it easier for passengers to hail a taxi. “In the future, there will be more taxis in the Macau Peninsula,” Kuok said.